SEI Investments (SEIC) Stock Forecast & Price Target

SEI Investments is experiencing positive growth across its segments, primarily due to its substantial leverage to rising asset values, with approximately $1.6 trillion in assets managed, administered, or advised as of December 2024. The institutional investor margin has shown improvement, increasing to 48.3% from 47.6%, which underscores the company's effective cost management and operational efficiency. Management has indicated a strong sales pipeline and expects to maintain robust margins similar to those achieved in the second quarter of 2025, further supporting a favorable outlook for the company's financial performance.

SEI Investments has experienced a decline in operating margins, with the private banks segment decreasing to 16.1% from 16.7% in the prior quarter and overall margins falling to 27% from 29%, indicating challenges in maintaining profitability despite ongoing investments in sales growth. Additionally, the company's net sales events dropped significantly to $29.2 million in 2Q25 from $46.6 million in the prior quarter, reflecting a potential slowdown in sales momentum. Furthermore, while higher asset under management levels offer some support, management's outlook suggests that margins are unlikely to improve, with expectations to remain at current levels through the year-end, contributing to a negative outlook on the stock.